Stocks plunge by 332 points on global downturn

Karachi: Stocks closed deep in the red on Monday with the KSE-100 index plunging by 332.29 points or 1.23 per cent. The pull back that saw the index sink below the 27,000 level, was triggered by fears over the decline in international markets.

As the global markets went into sell-off investors decided to take profit and seek an exit, lest KSE also came in the grip of huge foreign selling.

The market recovered some of the lost ground after an early falls of 417 points to intra-day low at 26,586.

The international markets became shaky on Thursday, when a survey indicated that the drop in manufacturing activity in the world’s second largest economy, China could continue.

The sell-off in emerging market assets was seen also on expectations that the Federal Reserve could further cut stimulus. Friday's slide put the S&P 500 on track for its worst drop since November 2012.

Investors awaited the figures of foreign trade for the whole day, most fearful of a heavy outflow.

Yet the figures released by the National Clearing Company Pakistan Limited in the evening showed foreign investors were sellers of nominal $0.81 million worth stocks. While institutions went into profit-taking, individuals were net buyers of 3.12 million worth shares.

Most of the index heavy-weights such as OGDC, Lucky, MCB Bank, ENGRO, PPL, NML and PSO saw major sell-off.

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